Oil-in-water emulsions stabilized with xanthan gum are known to become semi-gelled or "clabbered" upon exposure to the high shearing action produced by colloid mills or homogenizers used in commercial processes. The chunky-flow property of the sheared emulsion is particularly undesirable in, e.g., salad dressings and in other systems which require high shear processes for optimum product features, such as ice cream, sauces, and gravies. A dressing containing medium (15-35%) to high (35-80%) oil levels can be smoothed out by subsequent stirring of the dressing or by the pumping action of the bottling stage. Unfortunately, the objectionable clabber is permanently retained in low oil dressings, i.e., those with less than 15% oil. It is now found that sufficient shearing of xanthan gum beer (i.e., fermentation broth) either diluted or undiluted prior to subsequent work-up in the production of xanthan gum eliminates the clabber phenomenon. Hence, low oil level salad dressings containing the rehydrated xanthan gum made from sheared beer can be colloid milled or homogenized without developing a clabbered texture.